# Change Of Character (CHoCH) Strategy

### Change of Character (CHoCH) Trading Strategy Cheat Sheet

**Understanding Change of Character (CHoCH)**

* CHoCH refers to a price action pattern where the character or behavior of a stock's price movement changes significantly.
* It signals a potential trend change or continuation.

**Identifying CHoCH Setups**

* Look for a sudden change in the character of price action, such as:
  * A sharp increase or decrease in volatility.
  * A change in the momentum or pace of the trend.

**Entry Strategies**

* Bullish CHoCH (Upside Continuation or Reversal):
  * Look for a sudden increase in bullish momentum or volatility.
  * Consider entering a long position when the price confirms the new bullish character.

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Bearish CHoCH (Downside Continuation or Reversal):

* Look for a sudden increase in bearish momentum or volatility.
* Consider entering a short position when the price confirms the new bearish character.

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**Exit Strategies**

* Set a target profit level (e.g., 1-2 times the risk) and exit at least a portion of your position.
* Use a stop-loss order to limit potential losses (e.g., below the entry level for long trades, above the entry level for short trades).

**Risk Management**

* Start with small position sizes (e.g., 1-2% of your account per trade).
* Use stop-loss orders to protect against false signals or reversals.

Remember, trading involves risk, and it's essential to practice with a paper trading account before risking real capital. Always start small and gradually increase your position sizes as you gain experience and confidence in your trading strategy.
